In a recent advisory, the government has alerted pensioners, especially senior citizens, against falling for ‘pension scams’. Such frauds aim to defraud pensioners of their retirement savings. Since seniors are a vulnerable demographic, often not as tech-savvy, scammers are increasingly targeting them. Taking note of an uptick in such cases, the government has urged caution and outlined specific measures to help safeguard their financial security.

The Central Pension Accounting Office (CPAO) has issued an alert on its website against such crimes: “It has come to our notice that fraudsters are impersonating officials from the CPAO, Bhikaji Cama Place, New Delhi, and contacting pensioners. These scammers are sending forms via WhatsApp, email, (and) SMS, claiming that failure to fill them out will result in pension payments being stopped next month.”

The office has urged all pensioners to be cautious and not fall victim to these scams, and protect their personal information.

In another incident that highlights this danger, the Assam Police has recently alerted the public regarding a scam against retired people in the state. According to a BT Money Today report, scammers impersonating treasury officers reach out to retirees and falsely allege that their pensions are at risk of discontinuation if they don’t heed their advice. Those who have fallen into this trap were duped of their money.

How Do Pension Scams Work?

Fraudsters use various means to trick pensioners. They may pose as government officials, bank representatives, or employees of pension agencies. The scammers would contact their targets through phone calls, text messages, emails, or fake websites.

These cybercriminals typically ask for sensitive personal information such as Aadhar Card numbers, pension account details, or bank information under the pretence of verifying or updating pension-related details/documents.

They often try to convince pensioners to share ‘One Time Passwords (OTPs)’ to access their bank accounts directly.

How Can Seniors Protect Themselves Against This Scam?

1. Verify The Source: Before you respond to any call or message about pension-related issues, verify the authenticity of the source. Scammers will reach out to you posing as government officials - such as someone from the Pension Fund Regulatory and Development Authority (PFRDA), banks, or government agencies. It is important to note that officials do not abruptly reach out to you in urgency on call without pre-alerts and due notices.

2. Never Share Personal Information: CPAO, in an office memorandum issued in August 2024, urged pensioners not to share personal information, including PPO Number, Date of Birth, and Bank Account details, with anyone.

“Please note that the CPAO, banks, and other government agencies will never request such information from pensioners,” it said. Scammers can use such data to gain access to your pensions and other savings; therefore, it is mandatory to keep such details private.

3. Don’t Fall For “Too Good To Be True” Offers: In some cases, scammers try to lure pensioners with offers such as additional pension benefits or bonuses if they provide their personal or financial details. These fraudulent offers often come via unsolicited phone calls, emails, or SMS. Be wary of anyone promising quick financial gains or additional benefits in exchange for their personal information.

4. Do Not Click On Random Links: Usually, the scammers will send you an SMS while on a call with links to click on. Be aware of such situations, and never click on any link! One wrong click can give fraudsters control of your phone or bank account.

5. Enable Multi-Factor Authentication: For pensioners who manage their accounts online, enabling multi-factor authentication can add an extra layer of security. This involves using a secondary method, such as a one-time password (OTP) or biometric verification, to access accounts.

6. Report Suspicious Activity: If you notice any suspicious calls, texts, emails, or any unauthorised deductions from the pension account, report the matter immediately. You can contact your respective banks’ customer service, the Pension Fund Regulatory and Development Authority (PFRDA), or local law enforcement authorities.

Why Report? By reporting scams early, pensioners can help prevent further harm to themselves and others in similar situations.